Bill Ackman speaks with CNN’s Cristina Alesci about Herbalife’s “bottom of the pyramid” strategy and the company’s nutrition club model

Friday, May 2, 2014 Webcast

Former Herbalife Distributors Speak Out

"Let’s be conservative. Say you only make $2½ million a year. In 30 years, what is that? Almost $70 million."

Doran Andry, Herbalife Chairman’s Club Member

Summarizing Herbalife's Pyramid Scheme

Herbalife builds its brand on income promises, even though the vast majority of Herbalife participants lose money.

Herbalife’s marketing presentations and advertisements promise huge profits and a “get-rich-quick” opportunity. These sales pitches describe Herbalife as the key to “financial” freedom”, “extra income”, and a chance at “owning your business”, saying “anyone can do it.” Herbalife and its affiliates also highlight outlandish success stories. But in reality, the vast majority of Herbalife participants make no money and most even end up losing money.

96%earn less than$3.63

88% of Herbalife participants make no money and 96% of sales leaders earn less than half of the pay of a minimum-wage job.

Once purchase costs and other business expenses, including start-up fees ranging from $3,000-$4,000, are deducted, the average income of a sales leader is a net loss. 66% of sales leaders drop out in the first year.

Herbalife admits to targeting minorities, particularly Latinos in the United States. More than 60% of U.S. distributors are Latino, more than three times the proportion of the Latino population in the U.S. Furthermore, 300,000-400,000 Latino distributors will quit this year and will be replaced by 300,000-400,000 new Latinos. That means, if left unchecked, Herbalife could harm as many as 4 million Latinos over the next ten years.

As a former Herbalife distributor, I can say without a doubt that an investigation of Herbalife is warranted.

Hector, Los Angeles

I think they should be exposed, obviously it’s not right to take advantage of people...

Robert, Connecticut

This is not the American dream…I was told I’d be a millionaire by the end of the year, but I was left with nothing

Miguel, Illinois

I was told that if I would invest in this, that I would make back three times the money that I invested very quickly…I believe this is fraud, because you are promised that you are going to buy in to a business that’s going to be very profitable and at the end you are left in debt and a failure.

Jose, Chicago

Within the past year, the National Consumers League, Hispanic Federation, MANA, LULAC, several Members of Congress, and local elected officials have asked the FTC to examine Herbalife’s deceptive practices. It is estimated that over the next ten years, consumers will lose between $2-4 billion through Herbalife.

VICTIMS SPEAK OUT
Watch the Kenwood Documentary Trailer

Herbalife victims from across the country share their stories.

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